IDEAS home Printed from https://ideas.repec.org/a/taf/rjrhxx/v23y2014i2p127-142.html
   My bibliography  Save this article

Residential Real Estate Appraisal Bias in the Absence of Client Feedback

Author

Listed:
  • Julia Freybote
  • Alan Ziobrowski
  • Paul Gallimore

Abstract

Client and transaction price feedback, which implicitly includes client feedback, have been found to introduce an upward bias in appraisal judgments. However, new legislation such as the Dodd-Frank Act eliminates client influence on residential appraisers by introducing appraisal management companies as intermediaries between appraisers and lenders. In this study, we investigate whether the transaction price feedback-induced bias persists in the absence of client (lender) feedback. Using experimental design and residential expert appraisers, we find that the biasing effect of transaction price feedback on appraisal judgments has been eliminated. This indicates the effectiveness of the new legislation in reducing lender-induced residential appraisal bias.

Suggested Citation

  • Julia Freybote & Alan Ziobrowski & Paul Gallimore, 2014. "Residential Real Estate Appraisal Bias in the Absence of Client Feedback," Journal of Housing Research, Taylor & Francis Journals, vol. 23(2), pages 127-142, June.
    • Handle: RePEc:taf:rjrhxx:v:23:y:2014:i:2:p:127-142
    DOI: 10.1080/10835547.2014.12092091
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2014.12092091
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2014.12092091?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjrhxx:v:23:y:2014:i:2:p:127-142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjrh20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.